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KUALA LUMPUR: Public Bank Bhd, in partnership with Credit Guarantee Corporation Malaysia Bhd (CGC), is set to provide RM1 billion in financing to support small and medium enterprises (SMEs) across Malaysia.

According to CGC president and CEO Datuk Mohd Zamree Mohd Ishak, RM280 millions of this financing has already been disbursed, with an additional RM150 million launched today. The remaining RM570 million will be allocated in collaboration with the Public Bank to meet the evolving needs of SMEs, especially given Malaysia’s promising economic growth in the first half of the year.

Over the past 52 years, CGC has facilitated over RM96 billion in guarantees for more than 380,000 SMEs, underpinning its long-term commitment to the SME sector.

Public Bank’s managing director and CEO, Tan Sri Tay Ah Lek, emphasized the bank’s dedication to the SME sector, noting its significant role in the nation’s economic development. Public Bank holds a 17.5% market share in Malaysia’s SME financing segment, and this partnership with CGC aims to
empower SMEs further to seize growth opportunities and drive economic progress.

As of June 2024, Public Bank has extended RM69.3 billion in financing to SMEs. As part of the new strategic collaboration, Public Bank has committed RM1 billion in financing, which includes the latest tranche of the Portfolio Guarantee (PG) scheme, other existing CGC schemes, and forthcoming initiatives.

The PG scheme offers two distinct loan packages: – PG Property Package: Financial support for new asset acquisition and working capital, financing up to 200% of the property value or purchase
price.

PG Clean Package: Working capital loans without collateral. Both packages benefit from CGC’s guarantee of up to 70% of the facility amount for working capital.

These efforts highlight the continued collaboration between Public Bank and CGC to support the SME sector, contributing to the broader Malaysian economy.